5-Step Formula To Invest In Your 30's To RETIRE In Your 50's - DO THIS TODAY! | Jaspreet Singh

What would be the five steps if someone is entering their 30s about to turn 30 in their 30s to set them up for success to potentially be able to retire in 20 years what would that look like in a five-step process yes so I think it's an interesting thing now kind of being in the 30s because what I've been seeing happen especially recently over the last couple of few years is I began a lot of calls from a friend so kind of like woke Up it's like this thing where uh hey man I've been working

for five ten years I've been making a decent income but I have nothing to show for it like I have a nice car I have some nice stuff but I have very little cash in the bank I don't have any Investments I have no idea how I'm going to retire I have no idea how to become wealthy like what is going on they have a lot of liabilities you have a lot of liabilities even if you don't have any payments like I have Some friends who are doctors who have nice stuff they kind of grew

up with this mentality of debt is bad they don't have any payments but they have no Investments and they have no cash they have no cash you have no assets you don't have any cash flow it's just you have some stuff but you have no wealth and so it's like you kind of go through this like waking up process of realizing is this right or should something be different and I think that's where People start their journey of what do I do and fortunately because of YouTube it's become much more accessible for people to find

information before YouTube it was much more difficult but even then you know it can be very overwhelming so it's like what do you do where do you start and the unfortunate thing is we're never taught this stuff and this is what really got me so into the financial education space it's because I was very fortunate that I Kind of got exposed to financial education by accident in my late teens got into entrepreneurship started reading books and kind of Dove deep into this journey to figure it out earlier but it's kind of a lonely process because

no one else is really doing it and you might be like that odd duck trying to figure out what do I do how can I now go and achieve this wealth and we never taught this up we're never taught how to build wealth we're never Taught how to build passive income we're never taught how to really build this stuff we're taught to go to school and get a job and make some money and then what do we do we spend that money and this is where now if you can start taking a little bit different

now you can start doing things differently and a couple things you have to know is for one how much money you make isn't the sole determining factor of how wealthy you Will become because the first thing people think for the majority of people is okay I have all these payments I'm making just as much money and I don't really have that much cushion to really save money or become wealthy so I just got to make more money but statistically what we have seen is for the majority Americans when you make more money you dig yourself

into it more you dig yourself into a deeper Financial hole Really yeah because now when you make more money you qualify for more loans to qualify for higher credit limits for higher credit cards and more taxes you pay more in taxes and we'll talk about that too but now you spend more money and statistically this is what we have seen happen which is why for the majority of people you make more money you end up even broker wow and what's interesting is now if we if we kind of take a step Back and we zoom

out and we say okay how did we become wealthy somebody making fifty thousand dollars a year can become wealthier than somebody making a hundred thousand dollars a year and when you hear that you might say wait how is that possible well if you just look at the numbers you can kind of see what happens because if you have two people person a person B one person person name makes 50 Grand person B makes a hundred grand They both invest fifteen percent of the income so that means person a is investing seventy five hundred dollars a

year person B fifteen percent of a hundred thousand fifteen thousand dollars a year if person a starts investing whether 21 and they can get the average Market return which has historically been 10 a year and they do that from 21 until they retire person B starts say when they're 30 like what we're talking about a little bit after Because they partied in their 20s like everybody else did they bought some nice stuff and they say you know what let me start investing 15 of my income if person B starts investing twice as much money because

they're making twice as much money they are going to retire with not as much wealth as person a person a will have over a million dollars more in wealth even though they make half as much money they're investing half as Much money because it started a little bit sooner now if you're 30 and you're hearing this you might be saying what am I supposed to do now are all of my options gone no what I'm saying is this is where Financial education is so important time is just one factor when it comes to building your

wealth there's a couple other factors that I want to go over that will determine how you will become wealthy but this is where that Financial education is so important it's Not just how much money you make that matters is what you do with the money you make and that will determine how wealthy you will become so now when we talk about what are these steps five things that you need to work on first you need to know how to spend your money properly second you got to know how to grow your money properly third you

need to know how to save your money properly fourth you need to know How to earn more money the right way and then fifth you need to know how to protect your money you were talking about now how do you pay less money in taxes legally this is where it comes down to protect your money and each one of these things built on top of one another so maybe we can start with number one and then go over two that way we can kind of build on top of this whole process before you go into

number one Let's just say there's a 30 year old watching or listening right now they just turned 30. we're about to turn 30. and they're in that you know what I'm probably only going to make 50 to 100 grand for the next 10 to 15 year range maybe I break through it but maybe I don't let's say I never make breakthrough in the next 10 to 15 years 100 Grand sure and I really want to set myself up for financial wealth in the future sure if I Don't educate myself around anything else if I don't

take any other action and if I never learn another thing you say yeah and I don't even know these next five things yeah but if I put my money in one place yeah every month for the next 20 years yeah and I just live my life yeah what how much should I put away and where should it go to set me up for financial success even if I make all the other mistakes yeah but this will support me so I'm Thinking I will answer that question in this first step because that's you have to know

how to spend your money the right way first and before I jump to that answer I want to explain it because I'd like to help everyone understand the answer because it will help it make more sense see the first the first mistake or the first issue that people face is how do I actually become wealthy how do I invest my money for wealth when I have no extra Money right when I'm barely getting by I'm barely getting by and this is where you have to start with your spending because that is the most accessible thing

that you can do and this is where now how do you spend less money in a world where the world wants you to spend all of your money everyone's marketing you to buy to spend to buy things to travel all this stuff go out to eat do all the things that are luxurious that keep you poor well our economic system Thrives on this yes and this is where the first education we should all have before we leave High School is how does our economic system works because most people never understand this and then they wonder

why they're living like a rat in this rat race all the time because we never understand how the system works our economic system is made up of three different parts we have the economy which is the businesses in the economy we have investors which are People who own a piece of the economy and then you have the consumers this is people you me rich people poor people middle class people businesses every single person is a consumer now the problem that most people face is most people are only consumers they only spend money and they don't

own a piece of the economic system so now if you look at the way this works our economy thrives when people spend money the more you spend the more money That's going into the economy the more you spend at Chipotle the more money Chipotle makes if you're not buying the double guac home is not making as much money that extra cheese right so it's it's it's a system where it encourages people to spend and corporations will hire the like you were saying the best and most smartest marketers in the world to encourage people to open

up their wallets and spend money this is what's happening but none of us are really Given a shield of knowing when should I open up my wallet and should I not see if you don't understand this system it can make you one broke but then also very angry because they're like I have no money my banker's taking all my money these greedy corporations are taking my money my boss isn't paying me enough and you just feel like you're stuck but when you understand hey look Bankers are in the business of lending money they want to

lend you more money they want you to Go into debt because that's how they get paid corporations want you to spend money that's how they make more money your job now is to be a smart consumer and a financially educated investor that way now you can have the nice stuff but also benefit from the way that the system works so now going back to this topic of spending money you were saying how much should you invest this is where I would say start off with a simple system I like to say 75 15 10. which

means that for every dollar that you earn from here on out 75 cents is the maximum that you can spend 15 cents is the minimum that you should be investing 10 cents is the minimum you should be saving now what you do now you ideally want to create three different bank accounts and automate this whole process so you get paid it goes into One bank account and then you have an automatic withdrawal deposit where that Money is pulled out of one account put into your investment bank account and put into your savings bank account that

way you don't accidentally spend your investing money you don't accidentally take your emergency savings money and use it to buy new TV yeah so you wanna automate it and a lot of banks will do this for free uh where you just automate it that way you don't see that money so now it's a matter of okay understanding that hey the way that the System works it encourages me to spend now what do I spend my money on and this is where knowing okay I need to spend a little bit less on things that aren't producing

me with value which we'll talk about in just a second that way I can make myself Rich before I make everybody else rich but let me get this straight again spend 75 invest 15 save 10 is that right right so if you're making a hundred thousand dollars a year you can and this is take home 75 000 is now what You can spend fifteen thousand is what you're investing over the year ten thousand is what you're saving seems pretty reasonable and now this is what you can do regardless of where you are whether you're making

twenty five thousand dollars a year to 150 000 a year two and a half million dollars a year 25 million a year the numbers scale this way now you're always no matter how much money you make you're always paying yourself first and by paying yourself First I don't mean going on buying a new Gucci yes wallet or belt you're paying yourself by buying assets which make you wealthy before you go out and spend your money to make make somebody else Rich what are the top three assets you should be spending on so this brings me

to number two is now how do you grow your money okay right can we talk do we finish spend first yeah okay sure well let's go into growth because now we're talking about assets because why do Wealthy people want to own Investments well they want to own things that pay them this is where if you look at the mindset of a broke person and a wealthy person or somebody who wants to become wealthy we're not looking at how much money they have in the bank somebody who who wants to become wealthy and somebody who is

broke their mindsets are very different because the majority of Americans broke people middle class people they Make money to spend money well wealthy people and wealthy-minded people make money to grow their money and what does that mean that means they're making money for one purpose to buy these assets these Investments that pay them for owning it and it's a completely different way of thinking because when most people make a thousand dollars they think I go behind you watch I can go on a vacation I can go out to a nice dinner when somebody who is

wealthy or wants to Become wealthy makes their grand they say where can I put this money to work so this one thousand dollars can become two thousand dollars or so this one thousand dollars can pay me with dividends every month or every quarter every year so I'm getting some cash flow from these Investments so this is where now we talked about 75 15 10. that 15 the money that you're putting towards Investments where do you put this money and I'm going to give you More than three uh but I think the first place that especially

if you're just getting started the most accessible place for a lot of people is their 401k or the IRA and the mistake that so many people make here is for one they don't know what their 401k or IRA fees are NerdWallet did a study where they said that 92 percent of Americans don't know what the 401K fees are and so if you're watching this and you don't know that your 401k is costing You a fee sorry to be the bearer of bad news we'll talk about how to analyze that but then the second mistake is

they expect their 401k to be the sole retirement plan it was never ever ever intended to be your sole retirement plan yet you have so many Americans that are relying on the 401K to be the reason why they're going to be able to retire rich but that is not what it was intended for even the founder of the 401K has come Out and said that the 401K has gone awry really because so many people are using the 401K as their sole retirement plan it is not going to be enough should we invest in that at

all then or should we just move it into another investment look it is a good place to start for many people I don't invest in a 401k because I can get better tax advantages better growth and better control and better access of my money by doing my investing myself but I'm also your Obsessed over it I'm I'm an investor right this is what I do if you are not start with your 401k and also you're going to do other Investments that we're going to talk about and then you you make that decision for yourself if

you say hey you know what I find better Investments better returns better opportunities I rather have the control over my money somewhere else then now you can make that decision but a more educated decision not an emotional Decision that's the key don't jump to conclusions just because you hear some random person on YouTube saying something correct make your own educated position because what's good for you isn't necessarily good for me so you can start with you know your traditional retirement accounts which can offer some tax advantages uh whether it's a Roth or a traditional 401k

or IRA the difference between a traditional and a Roth is with a Roth you pay taxes First your money grows and then you can generally pull your money out tax-free whether traditional you don't pay taxes so more money goes in today but then when you pull them out put the money out you can generally uh then you will that's when you're going to pay taxes with your money out now beyond that this is where now you have a lot of opportunity because this is the area now that no one's really operating in because most people

assume I'm putting My money into my 401k so I should be fine right no this is where you have to now look at what are the other opportunities and I'm going to break this down into your passive opportunities and active opportunities because some people want to be involved with their Investments some people are money nerds like me where you're like you know what I like studying numbers I like looking at companies I like looking at Real estate I like looking at the financials I want to be more actively involved some people will say I hate

that I just want a place to put my money where I don't have to worry about it Saturday and work to build wealth that way I'm not stressed out about money and I can actually live my life financially free so let's start with the passive side because now what passive investing is it's you're taking some of your money Every time you get paid and it's automatically going to be invested uh what I say it's got to be automatic consistent and passive so you want this to be a system where no matter what's happening in the

economy no matter what's happening in the world you're gonna just passively and automatically have some of this money invested into something now where can this money go well the most common passive Investments are into the stock market now because of Technology you can also invest into real estate indirectly into some funds passively but I think the stock market is the most successful way and what the stock market allows you to do is we're talking about that economic system you have the economy the businesses the investors and consumers when you invest in the stock market you've

become one of the investors you now own a piece of the economic system because if you invest in the Amazon Stock even if it's just one share you become one of the owners of the Amazon Corporation now this is where most people assume that you have to pick stocks to invest in the stock market well let's look at the numbers historically because what you'll see is historically the stock market over the last century has gone up by around 10 a year you have most people lose money in the market which if you think about it

Doesn't really make much sense like yeah we see crashes I mean we see crashes like what every decade or so we see dips but if the market historically has gone up on average not every year is going up 10 some years more some years less but on average it's gone up about 10 percent how are most people losing money in the market well most people are investing their money in the stock market the wrong way if you're not willing or don't want to research companies you don't Want to keep up with earnings calls you don't

want to read the financial statements you don't need to invest in individual companies it can be a passive investor and invest in funds that give you exposure to the broader stock market it's hard to lose when you do that if you do that automatic consistent and passively every month 20 bucks a month even something small 100 bucks a month more if you have more And you put it in a fund that is going to continuously rebalance itself and continuously set you up for success over time it's probably going to get around 10 percent annually over

time if you just did that for 20 years you're going to see your money grow right it may not be as sexy and big spikes yeah and oh I doubled my money in three months like some stocks could potentially do but that could also lose Half of your money in three months also right and so if you're looking for it to be a a quick thing you're probably going to stress a lot more and you're going to make emotional decisions that don't serve you or benefit you in a long term right that's why doing this

approach automatic consistent and passive in a fund that is a solid fund will support you and and to that point I think the the big thing that stops a lot of people from seeing that success is they assume That their success will be instant slow it is slow you're going to go through ups and downs because what we saw happen in 2020 it will go down yeah the market crashed and we saw people selling out of their past funds because they're like well I thought it was going to be a guaranteed return now I'm down

40 percent well yes in that moment but remember you're supposed to be investing for the long term where it is the longer you Invest for the lower your returns are and what you have to remember as a passive investor is you're pretty much marrying your investment funds here because we're not investing now with the goal of of trying to sell in six months or two years and take it out and use it no we're trying to invest for the long term meaning multi-decades now when you look at that Horizon now yes your risk goes down

significantly but most of us don't have that level of vision to think That far ahead and when you see the market go down you get worried and you're on the patience if you don't have the patience real quick I got a question for you what if I told you one of the key secrets to making more money has to do with your mindset I've spoken with some of the most successful entrepreneurs investors and thought leaders over on the school of greatness podcast over the past 10 years and there's no doubt about it your mindset Absolutely

matters and that's why my team and I created a quiz to find your money mindset for you it's totally free and it's a valuable way to understand your own unique perspective about money abundance and Financial Freedom so if you want to learn more about your money mindset click the link to get started right now that's why I think if you if you use this approach like you talked about 75 15 and 10 and you said this 15 that I'm Going to invest in every month automatic consistent and passive whether it goes in one fund real

estate multiple things whatever you want to split it up and do Diversified I think knowing I'm not touching this money for a period of time right and it should probably be a decade at least at least at least a decade for you to be like this money I'm going to invest in it because I want to buy a home in a decade because I want to do this big thing in a Decade or I want to be able to retire in 30 years or I want to be able to whatever a certain time but that

15 you should not be thinking about I'm going to spend this right in three months and I want to make it go up 20 in three months so I can spend it right that approach will not work spend the 75 percent save the 10 percent so you have a window of buffer to pay for things as emergencies that come up right but not with the investment dollars right right The investment money is working to build you wealth right you become wealthy with your investment money your savings are there to protect you against an emergency you're

spending money is what allows you to live your life live your life and have the nice things and so now we'll get it to now how do you live more live better today by earning more money in a bit but this is where now the passive investing is the most accessible way for somebody to start investing and Then somebody's going to say what do I invest in right because we're talking about well you can invest in the stock market there are funds like there's index funds ETFs mutual funds they all work similarly with some nuanced

differences that allow you to invest into a basket of stocks a group of companies so for example I like ETFs just because they're very convenient so you invest in a ticker symbol ETF stand for exchange traded funds So for example if you wanted to invest in the stock market the General stock market there's a fund an ETF called vti now I'm going to tell you what to invest in just giving you some examples vti is a total Stock Market ETF if you invest in that one ticker symbol you're getting exposure to the United States stock

market you're getting Diversified getting Diversified in the stock market not across different asset classes but within the stock Market you could then you know pick oh I want to invest in let's say the S P 500 which is the 500 largest companies in the stock market spy there's a ETF that gives you exposure to that let's say you want to invest in the Dow Jones that is the most commonly discussed uh fund it is a group of 30 companies in the stock market big large companies Dia is a ETF that gives exposure to that you

can invest in three stocks which would be hundreds of stocks throughout those Three Investments ETFs exposure to exactly hundreds not thousands and all you need to do is invest in those three things and set it and forget it and now you can just add an automatic remember automatic so the key here now is you invest when the market is up and down you don't change it so when you see the market crash happen you don't stop you keep investing the only thing that you would change is potentially buy more yes because when you see these

types of Market pullbacks most people are selling and they're running away because they're panicking and getting scared that my investment is going down that's when you want to become and bind aggressively because now Investments are going on sale and so this is where it's again that mindset shift of understanding what is it that you want to be investing in and how long are you investing for if you're investing for the long term who cares What's happening in the next two months or next two years you're investing for the next 20 years I call it a

decade of sacrifice if you want to become wealthy and seriously wealthy not like oh I have a little bit of money no you want to become wealthy you got to put in what I call that decade of sacrifice where you're working to spend less and earn more that way you have more money to invest and most people are not willing to go through that sacrifice because That means I can't have that Gucci belt today so I can have more Investments today I can't show off my stock portfolio or my real estate portfolio the way that

I can my Gucci belt and most people would rather have the show would have had a look than the actual thing that will make you wealthy right and that you know goes back to the mindset the thing you talk so much about your mindset has to be focused on saying you know what I want to become wealthy And that's hard because now for one you have to be convinced yourself and now you might have a spouse you might have kids and that means you all have to be on the same page financially right because this

is a money is a team game it's in the house if you think you know I'm gonna go and try to build my wealth myself and then your husband or your wife is going out and spending all this money they're going to be pulling you back So you got to be on board where I'm mentally on the same page my spouse is on the same page my kids are on the same page we're going to build wealth yeah and we're going to build something that we've never seen before and that's that first mindset where now

I believe I can do it I'm going to do it now you start putting in that sacrifice so we started about the passive investing next is active investing and I also should mention that you can do passive and Active investing I do both I do what's the example for you so I invest my money in five places um I invest my money into businesses which are my own businesses and startups that invest in invest my money into physical real estate invest my money into stocks invest some of my money into cryptocurrency a little bit more

of a speculative play and then I invest a small piece of my portfolio about two percent of My overall Investment Portfolio into physical gold so my gold my cryptocurrency and some of my stock market Investments are passive meaning this happens for my stock market every week for crypto every day for gold every month it's the automatic passive and consistent I don't touch it it is automatically pulled out of my checking account and it is invested interesting and your bank you can set up parameters in your bank to automatically do this yes two specific places you

want to Invest exactly it's nice it is technology has made investing so much more accessible do all these Banks do this or what are like the top few that you see that many banks will allow you to move money from One bank account to the other these investment accounts you're gonna have to work with a particular brokerage there's tons of brokerages out there that do this you can find whatever you like for let's just say you want to invest in the stock Market there's a bunch of brokerages out there that will allow you now to

invest your money into the stock market through this passive type of system you just have to find what's right for you and this could depend on what country you're in uh you know and just the your what interface you like the best and just become very accessible there are so many it is so much simpler now than 10 years ago let alone 50 years ago right so we are very blessed to be able to do This now right on the active side this is where now I invest into my own businesses I invest into real

estate uh and then I also invest in some stocks do you do real estate funds or do you do your own individual real estate buildings yourself I have done some real estate funds but that is the smallest piece uh most of it probably 99 Point some percent of it is actual physical real estate that I'm going on and buying myself And so now it's when we talk about active investing what does this mean first this means now that you are going out finding investment opportunities to invest in and then you're putting your money in and

uh now this is where the research is important so like for example with business I invest in my own businesses I also invest in some startups startup investing is very risky 9 out of 10 startups will statistically fail so I know that when I invest my Money in these startups a big chunk of this money will I will probably never see again but my goal is now that a small piece of these startups that I invest in will go big and then that will make up with the other losses yes with real estate my goal

is completely different with real estate my goal is cash flow uh I call it cash flow because cash flow funds the guac flow and what that means is now when I own a cash flow producing asset I'm getting money coming Into my account now every month with my real estate that I don't have to actively work to arm because I have a property management company in place I have a system in place so it's not like I have to go to work to earn this money I buy the properties I have the systems where we

renovate the properties with the contractors we do the right inspections then I give the keys to the property manager my job is done now every month I'm getting cash deposited Into my bank account every month and every quarter I get financial reports going over what's going on with my properties so it's hands off I still review the properties like I review the financials I review what the property manager is doing but I'm not going to work to earn this cash now I should also say it took me a ton of work and a ton of

time and a ton of headache and a ton of mistakes to learn how to do it the right way yeah Because uh you know I didn't grow up with Real Estate Investors in my family I had to go out and just kind of do it and figure it out and it was very stressful you know a lot of people on the internet make real estate investing seem like this Holy Grail go buy some real estate and you're going to be swimming in the dough but here's the thing when you buy real estate on your own

it's almost like a full-time job managing the property if you're doing The Airbnb or short-term rentals it's like you're going to constantly clean and adjust and promote it and Market it and deal with the Airbnb stuff or you need to find someone to pay to manage it yeah but ultimately at the end of the day you got to deal with the taxes of it you got to deal with the expenses of it you got to deal with the fixing of it you got to deal with the regulations around it whatever it might be so how

do you invest where it doesn't become a Time suck and an extra job so in that real estate but it's actually cash flow that that is more passive is that even possible with real estate for I can only speak from my experiences because for me it was a huge time suck it was like a full-time job it was more than a full-time stress I couldn't sleep at night because of how many issues I dealt with but so why be in real estate today if it caused you so much pain previously well see I you you

go in with the vision right like entrepreneurs you have to be a little bit crazy you don't know how Something's Gonna work out but you're you're putting in countless hours you're not sleeping at night you're sacrificing vacations you're not talking to your family you're doing a bunch of crazy things because you think this thing is going to work that's how it was for real estate I'm known for being like that stupid person and I've always been that Thing and for me it's like I believe something so much that I'm willing to make a lot of

sacrifices and keep doing something and for me when I invested in real estate I was 19 when I started when I bought my first property and um I did it kind of all by myself because I told my dad I wanted to invest in real estate and I grew up in a very traditional Indian house my parents are immigrants my stayed in India called Punjab so my parents came to this Country with very little and so yeah exactly dance we were just talking about before this is a traditional dance um but my parents came here

with very little and um you know they wanted me to be a doctor and it was very like strict that you have to become a doctor nothing else is the option so anything that wasn't medical related was like a big No-No so becoming a lawyer you were a failure I Was yeah that was a huge compromise for you to become an attorney with my parents but this is before I even became an attorney where I said I want to invest in real estate my dad was like and I was actually studying for the Medical College

admission test when I had the idea to start investing in real estate and I had some cash saved up because I was working on a event planning company at the time when I was in college my parents didn't know about That so I was making a little bit of money and I was like I want to invest in real estate my dad's like you're stupid go study go become a doctor and then worry about all this other stuff that you're doing so I was like all right I'm just gonna do something yeah you know so

how much was your first deal a first deal so it's gonna sound crazy because this was at the bottom of the 2008 crash um so it should have been very cheap very cheap this was in uh the Metro Detroit area Detroit it was especially hard struggling that it was it was a small condo that I bought the condo about three or four years prior to me purchasing it sold for about 150 Grand it went through foreclosure the banks had it listed for eight thousand four hundred dollars oh man you got the jackpot of that thing

it sounds like I I made an offer for four grand oh my gosh I don't know what I was doing right so I'm like whoa did you get it well I put It off for four grand they said we'll give it to you for seven thousand and I said no I'm gonna I don't know what I offered something else maybe less than five grand yeah and then another person came in to potentially buy the property and so the bank says we have another offer on the table give us your highest and best offer now to

put this in perspective I didn't know this was a good deal because I'm 19. I knew nothing about money five grand is a lot of money At night it's like all your money yeah so I know nothing about investing I didn't know what passive investing was I had only read books about uh investing so I'm I'm reading some books and now I'm just going out doing it because I know nobody in real estate I didn't even know you could invest in real estate so I'm like okay well somebody's making an offer I kind of like

this deal because I looked at a few other properties so I was like well how about make an offer For eight grand we'll see where they go and the bank took my offer the other person offered less than what I did wow so I bought it for eight grand I put in a few thousand dollars worth of work and then I listed it for 600 a month and the profit on that was between 250 to 300 a month depending on the month which now sounds great right this is the the beauty of real estate the

downfall is it was a big pain because I didn't know What I was doing I hired a I don't want to say scam property manager because I haven't been able to validate that but I don't know if they were licensed right the tenant moved in we didn't have a lease the tenant was absolutely crazy they had my phone number so now I'm going to class like I remember I was coming out of my chemistry classes or my physics classes and I had these voicemails these multi-mined long voicemails of the tennis Talking about how the world

is ending they're like this property is going to go up in Flames so I was like oh what's going on right electrician out there we go to the property and this is like after multiple issues that happened I went with an envelope of cash I probably had like 50 of cash in this envelope that I gave to them because I felt bad for the tenant electrician's looking at the property they're like yeah your light bulb fused we can just replace That that's it that was it yeah there was an instance where they were cutting cucumbers

on the countertop they missed the Cucumber they scratched the countertop she calls me crying that she needs a brand new countertop oh my gosh I gave it to them oh because I didn't I don't know what's going on so like I dealt with a lot of issues and that was just the first one I mean like the first I would say three or my learning Curve where I was like a full-time like I'm on the phone talking to people trying to find contractors I'm trying to find the right attorneys I got screwed over by attorneys

I mean I made every mistake possible why'd you keep doing real estate after the first three failed yeah see this is where the the stupid comes in out of me well uh I read books and people talk about how investors own thousands of real estate units I was like how can somebody deal with Thousands of tenants like this like it's not possible like there has to be a system I just had to figure out how to crack that code how do I break this system and that was my journey was learning it and it was

very painful very expensive uh and very stressful because the third deal literally depleted my bank account um I was talking to my wife about this the other day where uh that their deal was so stressful because I made every mistake possible I talk about this on YouTube it's my worst realest video ever uh I bought the deal because my contractor told me it was a good deal he told me that hey we can fix it up for not a lot of money and because it's such a good deal you're going to be able to make

a lot of money wow so he's like don't even worry about getting an inspection on the property disqualified so that's what I did I trusted him right Bought the property gave him the money he ran away I didn't know that he wanted the money because he was running into financial problems then this property it turns out had a lot of defects behind the scenes which I didn't know we had the City come out and look at the property and it was the repairs cost way more than what the actual property cost and so now I

was really in trouble because I wanted to Get this property rented out my bank account that property account literally went negative and I had to overdraft fee on this account uh which I had no money to pay at the time for that property because I was putting all my cash into this and like I was saying before I was in that event planning party business which was a cash business so I had like literally a bag of cash in my room so I went to my last resort which I called It the cash out of

my bag and I gave it to the contractor I was like we got to get this done I need to get this I need to get some income out of this property because I couldn't sell it I couldn't get a certificate of occupancy I couldn't rent it out and so it was like I was so stuck I was fortunate that I had that cash but I mean it was a tough situation that was my real life tuition like that was where I learned I say that one deal Taught me years worth of real estate in

one property because I learned so many things wow that I should not do but then from there you know I was able to stabilize I made some more money with other Ventures that I was doing because I was making money for one reason to buy real estate like that's all I was doing and losing it in the real estate losing your real estate but I was learning right that was my learning process so I guess I can't you Know I I wouldn't change it because I learned a lot from it very stressful like when I

say I lost sleep I lost a lot of sleep during that time so when you're gonna buy a property now what is the approach that you take so that it maximizes your return saves you time and energy and minimizes stress if you like what is the approach if you're like okay am I buying single unit properties am I buying apartment Buildings am I buying duplexes fourplexes am I what am I working with another investor and buying a bigger deal what is that thought process into buying a deal yeah first off and then how do you

set it up so it doesn't take you a lot of time to manage it sure so I would say the first thing is I need to know what my return is going to be and generally my general rule of thumb is I need a seven percent cash on cash return and literally annually and what that Means is for every dollar that I invest I want to see seven cents of cash flow uh that's money that's hitting my bank account after expenses uh that has nothing to do with appreciation so I want to look at those

financials I want the seven percent cash on cash return then I gotta look at where am I investing so I like to invest in areas that are growing uh that have more like up and coming-ness to it so this is now I want to see populations at least Stable if not Rising do a quick Google search of any City and Google will tell you what's happening with the population it's made it so easy wow what are the top three cities that are rising that are also not over I guess overpriced right now what are those

topics let's see in 24 months where that actually is because we're going through this correction in real estate right now so let's see where interest rates go because that's going to influence that's True uh housing prices and real estate prices in general interesting but keep an eye on interest rates the general thing is as interest rates go up property prices will go down so let's let's rediscuss that what do you think is going to happen over the next 12 months with interest rates well the Federal Reserve Bank says that they're going to raise interest rates

and if they keep doing that they're going to Push this economy into a lot of pain because it came down a little bit right recently so mortgage rates and interest rates are two different things okay interest rates set by the Federal Reserve Bank are called the federal funds rates this is the interest rate that One Bank pays another when they lend each other money overnight so that think of it like the wholesale price right when when you go to buy this mug from Amazon Amazon's buying it from the Manufacturer so they're buying it cheaper then

they sell it to you at a marked up price called the retail price so banks have this wholesale price called the federal funds rate then they Jack it up and sell it to you as the mortgage rate so federal funds rates the Fed rate can influence your mortgage rates are going so our interest rates can be different than mortgage rates right they are different than mortgage rates what's the Current kind of interest rate at the time of this interview uh for mortgage rates for the interest rate versus mortgage rate so uh the federal funds here

right now is right around five percent just under five percent the federal funds rate mortgage rates are hovering around the mid six percent for a 30-year fixed rate mortgage wow now the question is where are we going to go from here the Federal Reserve Bank has a mission To fight inflation that is a big deal it is a super serious problem and we've discussed this in other interviews I'm not going to go too deep into like what is inflation why that's happening we have an inflation problem and that is a serious problem because if we

don't solve the inflation problem then we risk a serious currency crisis we risk potential hyperinflation we risk our our dollar losing the reserve currency status so it is a serious issue to bring Inflation down because yeah a recession is bad a currency crisis is even worse that's why the Federal Reserve Bank is working to increase interest rates because that brings down inflation now they're looking to increase them increase interest rates and what about the mortgage rates so that pushes mortgage rates higher higher so now Rising interest rates have a consequence and that consequence is a

slowing economy Because when you raise interest rates and makes borrowing money more expensive unless people want a lot of money less people buy and now if you remember what we said just a few minutes ago in our economic system spending is good for the economy higher interest rates less spending bad for the economy our economic system wants people to spend money in fact they want you to be in debt and spend money because if you're in debt and you're spending money They're making money they're making more money they want you to be in debt because

more debt means more spending today that grows the economic they don't want you to win they don't they want you to be spending exactly and this is where like going back to what I was saying of you want to be a a smart consumer and a financial educated investor you have to understand this because it is not your patriotic duty to being broke for the sake of the economy and be in debt and Be in debt right so understanding now that as borrowing costs go up it slows the economy and High inflation also slows the

economy so we have this double whammy going on and this is going to be this is not something that's going to just blow over like this might take a little while to see the full effects of this but in the coming years we are going to see the effects of high inflation and the higher interest rates and the question is this Is where a lot of people have guesses well we don't know the question is what is the Federal Reserve Bank going to do are they going to stay strong and continue to raise interest rates

even if it pushes the United States economy into a recession or even a depression or are they going to reverse course start stimulating cut interest rates do quantitative easing which could then make the inflation probably even worse didn't They do this last two years though that stimulate by giving us yes so much money in there what do they do to the economy the economy boomed yeah 2020 in 2021 where boom years for the economy businesses were making record profits now we're seeing those same businesses do layoffs exact same businesses but why see you would think

that if a business is making record profits that you would then have huge cash piles To sit on right and they were in 2021 we saw the largest cash piles with these businesses ever so what happened to that well when a business has cash in its bank account there's three things that it can do with it you can save some of the money for emergencies you can spend that money back in the business reinvest back in advance employees open your new manufacturing plans acquire companies you know acquire companies but the third thing that you Can

do is you can give that money away not to anybody but give it away to the shareholders to the investors and you would think that a a astute business would want to save money because well I mean you want to be protected against a recession right it is the least attractive thing to do save money save businesses do are not incentivize to save money because if you save money you've got to pay a lot of tax so if a business makes a hundred Million dollars of profit you're going to pay a big tax bill big

tax half that money might go into taxes so now you have the shareholders of the company the investors that are saying why would you want to take that 100 million dollars that we have spend 30 to 50 million dollars of that to the IRS and then only leave 50 to 50 million dollars why don't we take that money and do something more productive with it productive not by giving it to the IRS But putting that back into the company or giving that to us as the shareholders that way you pay less taxes yeah well you

pay less or no taxes so option two is now we spend all that money we hire more employees we open more growth because if we have 100 million of profit but then we spend all 100 million to now we have no taxable income no tax bill or option three which is what we saw happen the shareholder said we've made a hundred million dollars of profit We've been investing in this company for a long time time to pass back we want to share so what do we see happen we saw the largest stock BuyBacks happen in

the history of time now if you're thinking a company made 100 million dollars worth of profit they're going to buy back 100 million dollars worth of stock your thing is small because if you remember back in 2021 what else do we have we had the lowest Interest rates ever so what did they're like two percent or something someone they were the lowest we've ever seen crazy so now shut up about a home then the the shareholders and the corporate officers said huh if we have 100 million dollars worth of profit we can go to the

bank and borrow 500 million dollars at two and a half three percent and now what do we do instead of doing 100 million dollar stock buyback we can Do a 600 million dollar stock buyer back and now they gave away the 600 million dollars whether it's their dividends or stock BuyBacks shareholders made a lot of money no more cash in the bank account but the corporations are left with a big Bill right that debt has to be paid back plus interest now what are we seeing happening we're seeing revenues falling and at the same time

expenses are rising why are expenses Rising for one Inflation but second because debt costs are rising see you can go out and get a 30-year fixed rate mortgage corporations don't do that they get variable interest rate terms so maybe their debt readjust after 12 months or 24 months or 36 months or five years but that debt we adjusts and so now what we're seeing happen today is more and more corporations are saying oh our revenues are not growing as fast as they would like but our expenses are rising or About to rise why are they

Rising well we're seeing our debt costs Rising because our cost of servicing these debts are skyrocketing interest rates are going up and so now when you're a corporation and you're in a situation where revenues are falling and costs are rising and you have no cash in the bank what do you do you'll lay people off yeah so that's why we've been seeing so many of the same corporations that have huge layoffs that have been doing BuyBacks over the last couple of years not doing layoffs is there any massive companies that isn't doing layoffs right now

the big tech companies it just seems like all I don't want to see a company today because tomorrow they could do a list right but it seems like a massive percentage has been making big layoffs from you know eight to fifteen percent layoffs it seems like of their employees you just keep hearing it every week Another big company doing this or making their second round yeah um do you feel like that's going to keep happening over this year yes really that will continue to happen as long as we keep increasing interest rates if we don't

increase interest rates we could see a short-term boom in the economy but inflation is going to be the thing that then skyrockets which will have its own effects so it's do we want to deal with the issue now and go through the pain or Are we gonna put a little Band-Aid on it no matter no matter what size business you are say you're making a hundred thousand dollars a year in a business a million dollars a year 10 million or 100 million what advice would you have to business owners during these next six to 24

months to prepare for if interest rates are going to go way up if you can think this is going to go up In a big way how should I prepare no matter what level I'm at a hundred thousand million 10 million 100 million what should I be doing so let me tell you what we're doing at briefs media because we have a newsletter company we talked about Market briefs that's one of our newsletters we have business briefs and we have a Spanish newsletter as well uh so we have a newsletter company it's free to Consumers

so if you want to stay up to date on what's happening in the News you can go to market briefs briefs.co but we are an advertiser-supported business which means that we rely on other businesses to pay us so we can continue to give these newsletters for free now if we look at history because I love reading books uh especially biographies and what we see happen is anytime we see a recession the first thing that businesses cut are their advertising dollars so what does that affect Companies like mine and so I'm reading this and I've seen

what's happening in the economy and what we've been doing is over the last number of months is we've been working to build up a cash pile to protect us against whatever might happen and also working to Pivot of what can we do to make sure that we can self-support ourselves so that's when we also officially launched Market insiders which is kind of like a sister company to briefs media which is our education Platform which is where now if you want to learn more about how to invest your money into the real estate market how do

you invest in money at the stocks how do you actually build your wealth and manage your money how do you the actual education of the investing now we can service our own readers with that education it's the app you are like you can do it on your phone we have a web platform so that's marketinsiders.com that we created as a Way to surface our briefers especially with what's going on in the economy because now we are now kind of diversifying how we're generating Revenue so that's what we're doing it's to protect yourself against what could

happen building the cash piles and then making sure you have more than one stream of income by not just relying on advertisers but also be able to provide a service or course or program to be Able to sell direct to your audience something something that will provide more value uh to your audience or your customers itself yeah and so this was a direct integration for us because people are now reading what's going on in the news hey if you want to know how to invest we have an app that can help you with that as

well so it's knowing what can serve your customers in the best way possible right okay so that's what businesses should be thinking about Businesses should be prepared for anything and look if nothing bad happens if the economy continues to Boom hey you have some extra cash now you can go and hire more employees you can go and go to Disney World you can go and take your employees somewhere fun so you know it's it's there's no cost to Preparing but there's a huge cost if you don't prepare that's true that's true the main thing that

you need to understand so going back to Active investing right yes so we talked about real estate which is one way um well first off yeah how do you set yourself up for success to not be an extra job investing in your real estate now if you're spending 30 percent of your time on an asset that's causing stress energy you happen to go there you're going to fix it calling the contractors more investing to fix things up like how do you make sure you find the right properties and what are those Properties you look for

so I think we got past the first part which is I want you seven percent cash of cash return you said you're looking for the growing locations with growing yes okay that's where we left off so we want an area that is growing I want to see businesses moving in and people spend thousands of dollars to research like when are people going where are the trends I can give you a 10 tip that will give you the same level of Analysis even better go to the neighborhood where you want to potentially invest go to a

local coffee shop buy a cup of coffee sit down with the Barista and ask them hey I'm thinking about moving in here uh do you live here in this area and see what they say if they live there now you have a conversation with them and they will tell you what's happening crime is increasing I love the area restaurants are moving in I'm thinking About moving out and that will give you a gauge of what's going on from somebody that's actually living there talk to two or three different people if you see these two or

three people talk about how much they love this area because there's new restaurants coming in there's more nightlife coming in there's more cool things happening people want to work their people want to live there now you have your info telling you that this is a cool area Okay and then and then when You you see the environment is set up for thriving success yeah and you see those measures what type of properties do you look for so for me I like residential which could mean for me whether single family or apartment complex whatever is going

to give me at least a seven percent cash in cash return I look for value-add deals meaning if it's a single family home most people will walk into it and walk Right back out it's got holes in the walls it smells like crap the carpet is not there it's got a lot of issues so I have a team now over the years that I've been able to build up that we can do the renovations if it's a apartment complex I like distressed deals these are typically apartment complexes now that somebody bought a property and they

didn't know how to manage it and now the tenants are not paying rent It's half vacant it's got a lot of issues it doesn't look good I can come in and I can fix up this property make it look beautiful fix the neighborhood make people want to walk by this area and build a property now where people want to live so you look for broken down places I like those deals you're like when people shy away from you like going in because you know you have a team that can support you in fixing it up

adding value and Equity to the the property Mindset baby do what everyone else is not doing right exactly and then so you're willing to get dirty but you've got a team that supports you in doing that yeah and that took time to build right and I talk about because you're asking now how do you do it without putting your time in I don't have an answer because I put the time in yes and there's look a lot of people looking for shortcuts to do things there isn't always a shortcut sometimes you just got To put

in the work put in the hours lose some sleep and do the things that are hard because we try to desensitize ourselves from a lot of but look sometimes you can't do you like pain creates wisdom and sometimes you have to be willing to go through that and so you know when you say how do you do it without putting that work I put in a lot of work which is why now I can I have the teams in place that makes it much more passive for me where I can text my Contractors I can

text two or three guys and say hey look I'm buying at this buying this property here's the the code can you go through it here's what I want to do let me know what your cost will be now I've got a few different options I tell my property inspector here I'm looking to buying this property let's go meet at this property atama property manager they're going to give me comp so what they think they can rent it out for it's much more systemized for me but it Took me I mean a lot of stress to

get there yeah now are you willing to go through that can you avoid some of that stress I'm sure you can like I was very naive I didn't have mentors I didn't have people guiding me I don't have much education I just went and did it right if you kind of you watch some more YouTube videos you get some more education maybe you find a good real estate agent that can guide you you might be able to save a ton of time you Might be able to do it much faster much better than what I

did I just know what I did sure and so I don't want to guide someone to say do this when that's not what I do and are you considered a real estate professional too then where you can write off essentially all your taxes so technically I am because I'm also a licensed real estate agent so I went in right when I bought my first property I was like I don't know what I'm doing I want to get more experienced I don't Know how to do that right YouTube did not have real estate education then it

was just books and I hated reading yeah so I was like well I don't know what to do let me go get my real estate license so I got I don't know right and so I was 20 I got my real estate license I started selling real estate I started helping people buy and sell real estate and I also started wholesaling real estate because my broker the boss in my office She said does pretty you're the youngest agent in my office what why are you doing this I said well I'm in college so then why

are you here she said um well I said I want to invest in real estate I want to do this I like real estate I want to do this and she's like well I teach real estate investing now a lot of people call real estate investing things that it's not like she was calling a real estate wholesaling real estate investing which I would disagree With what's the difference between wholesaling and investment so wholesaling is essentially uh you're flipping real estate but you're buying and you sell six months later after you fix it up or whatever

yeah but without actually buying the property you enter into a contract to buy a property and you flip the contract gotcha so it's a little bit less risk but it's essentially a form of flipping real estate people call that real estate Investing I would not consider that investing but I did that and there was a way for me to start earning money I met more people I went to real estate conferences I mean I got fully immersed that's just how I do this when I want to do it I get go all in into it

so I bought one property I got my license I started selling real estate I got into wholesaling real estate and then I did more of it and so that's how I got in and I met a lot of people so you've been A real estate professional for 20 or 10 years then since you were 20 roughly more than 10 years ago yeah so that does that mean you're able to pay zero tax as a real estate professional so it's not zero tax once your income crosses a certain threshold but there are things that you can

do if you qualify as a real estate professional maybe 750 hours or something or if you're 51 right what that means is if you put in a lot of Work into your real estate you can qualify as a real estate professional on your taxes and then you can get a bigger write-off on your real estate income right that's essentially what that means and so this is where you want to have a good accountant um to help you find the best deductions out there because that's the tax code is is a rule book sure which uh

we will talk about when it comes to protecting your Models because there's a lot of things that comes to taxes that can help you save money and taxes legally so real estate are we good on real estate yes I think so okay so real estate investing is one way to actively invest the stock market is another way so we talked about passively investing in stocks which is reinvesting in funds now it's the opposite reinvesting in individual companies research companies you look at earnings Calls you look at the financials the balance sheet the income statement the

profit and loss statement you look at these things and then you make your decision I like this company I like the products I like what they stand for I believe in the future and the numbers make sense I think it's a good stock price now I'll come in and buy most people try to do this without actually doing it and this is where understanding that if you really want to Succeed as an investor you want to pick stocks fine nothing wrong with it but I understand that it will take work if you really want to

see the success like Warren Buffett spends all day every day reading books studying financials looking at the numbers that way he can come up with the best analysis for his companies that he wants to invest in so it really has like 10 stocks in investing yeah he doesn't have he doesn't invest in 10 000 companies I Mean he invests in a small piece of I don't know the exact number but he has a small portfolio of companies that he actively manages when I say manages I mean he reads what these companies are doing he reads

the earnings calls he's reading the numbers he's analyzing he's reading books he's always learning even today so that's where now active investing is a way for you to be more involved now the question is why would you pick one or the other And this goes to now how wealthy do you want to become and how does that align with your goals because there's three factors that will determine how wealthy will become this is math one is how long you invest your money for at the time two is what return you're getting on your money and

third is how much money you invest we can't go back in time you can't go back 10 years ago and start investing so the best time to start is today so time is out of the Picture when it comes to how much money you invest we'll talk about how to earn more money in a second but you can earn more money that we have money to invest the last factor that will determine how wealthy you become is what return you get when you leave your cash in the bank you're getting next to nothing especially in

a Traditional Bank you're getting less than one percent it's going to take you forever to double your money It's not the question is how can you double your money faster you need a better rate of return how can you get a better rate of return well you can be more involved with their Investments and so just understanding now risk versus reward higher risk means you have the potential for higher reward does it guarantee higher reward no I've lost money on my fair share of Investments even in my own business like your own business is The

Highest Potential reward and the highest risk and highest risk yeah you know I've made very bad business decisions uh which lost me a lot of money and it's not fun it's not fun but it's your tuition right your real life tuition because I went through a lot of school I never learned a single thing about wealth or entrepreneurship from my school so it's a matter of now uh how do you learn you learn by doing And you will always keep learning like in the beginning a five thousand dollar mistake even though before that a 500

mistake was like the end of the world then it was a 5 000 mistake then you go to a fifty thousand dollar mistake then wait till you make half a million dollar mistakes right and that happens and if you learn more things as you get bigger and the more you grow you're gonna keep making mistakes just the dollar amounts Get bigger and that's how you learn you keep learning you keep going through this tuition and so it's like you learn by doing that also keep reading books I love reading books I actually listen to audiobooks

but you know get books because there's a lot of knowledge in there you just launched a new book read your new book definitely get that check it out uh watch YouTube videos and then see maybe you want some coaching from somebody Maybe you invest in some other educational platforms when it's right for you like even with Market insiders I never tell anybody to buy one doesn't have the money if you can't afford it do not buy it this is only for the right people who are actually going to use that education it's not expensive yeah

but it's it's we want use the free education and when you're ready for more handheld guidance now you have more education there for you so that's where Now the active investing gives you an alternative to passive investing that way now you can decide how involved you want to be for the return that you get so now we talked about how to spend your money right we talked about how to grow your money the third thing is how do you save your money the right way and this is should we save our money if it just

sits in the bank and loses money based on the interest rates going up and US essentially losing the money every Day it sits in there not earning as much as the interest rate man you you like read my mind for me no that's what happens when you watch your show you know uh when you save you got to save a money strategic you gotta have some money saved for expenses for a rainy day you know be six months ahead I'm assuming is that your strategy exactly you save strategically I said somewhere between three to 12

months and this is going to depend on where you are in life Yeah you have no spouse you have no kids you are willing to take on a bunch of risks maybe you only need a few months worth of savings if you've got a spouse you have kids you don't like taking on risk now you can have six 12 months worth of expenses depending on where you are but the big thing here is now like understanding really the difference between needs versus wants assets versus liabilities and not I mean it kind of Ties in with

spending but it's not justifying liabilities as assets assets are something that put money in your pocket liabilities are things that cost you money you need a car to get to them from work you just want a beamer you need some clothes you just want the Gucci yeah you want a home you know actually you need a home you just want the mansion and now it's like okay where can you make sacrifices and again this is the decade Of sacrifice that I was talking about what are you willing to do and this is where and know

what season of life you're in you know it's like if you're just in if you're trying to get out of debt you're trying to get to a certain level of savings and Investments don't overspend on things that you don't need to get from point A to point B yeah you need clothes but you don't need thousand dollar suits every day you need a car Like you said yeah but you could also take the bus and walk or ride a bike for a season of Life depending if you need to for a few months you don't

need or you can buy a used car yeah you know what I mean for a few grand and get around town what's most important to you at the time like because I'm not saying don't buy nice things I want you like the whole purpose of understanding money is to live your life financially free and to do what's valuable to you if you Like nice cars like I like nice cars fine make sure you can afford it first yes that capital A you gotta afford what you want yeah you want to go on vacations fine like

it really really uh you know things that like personally get to me is like when you see people come to you like especially because now people come to me because they know like hey you know you talk about money you've seen success with money people that I know come to me and to say hey man like I'm struggling financially and you know they'll they'll lay out the situation and I feel very empathetic and we'll I'll come up with a full plan for them here's what you can do to start improving your your financial life and

then you see them go finance a new vacation you see them go buy a brand new car and it's like we just had a car a call about you and I were like you just said you're gonna go and sell your car buy something used That is going to save you a lot of money you have no more payments and then you go and finance a brand new truck like look I want you to have that truck I got nothing against trucks I'm from Detroit right like that's nice cool but I want you to be

able to afford it right being that smart consumer and a financially educated investor is so much more mental than it is financial just look at a financial sheet like okay this is the most you can spend now you figure out Where you spend this money that's the financial side of investing the mental side is now what are people going to think when you go from a BMW to a Camry yeah and now people are like hey are you okay like is your car in the shop like no this is my new car right and and

that's that tough part when people look at you like you lost your mind and now what are you gonna do at that point are you going to accept it and say you know what I am making a change in my life or Are you going to give in and say ah you know what let's go on a vacation let's go do something one of the things that causes us to doubt ourselves the most is these kind of three fears that I actually talk in my book and one of the fears is Judgment it's the opinions

of other people and if we can overcome the fear of what are people going to think about me um that's usually what holds us back from making wiser decisions from acting On the things we want to create in our lives from putting something out there because we're afraid of other people's opinions so if you have a vision for wealth I want to be a wise investor a wise saver I want to be smarter with my money and I need to make some adjustments and really take a look at every decision you're making in your life

how is the supporting and serving your vision for a wealthy lifestyle for the future if you Really take a a bigger picture and assess everything and if you say okay you know what this car I don't need to be making 600 a month car payments to look good yeah I can make 200 car payments or I can buy a used car and pay it off up front for them and have it for seven to ten years and not to put more money into it um I don't need to buy new clothes I can go secondhand

store and still get quality stuff yeah whatever it is that's Going to help you in making healthier choices for a wealthy vision of your future and if you can learn to face accepting and loving yourself for making these conscious decisions and making your future self prouder and and manage the couple comments or people's opinions potentially about what they're saying about you if you can manage that courageously you will set yourself up for so much more financial peace over Financial pain in the future But you've got to be willing to face the fear of Judgment of

what people think about you in order to do this especially early on when you make these tough decisions and that's so hard so hard and you're so right because we've all been there every single person and you know I remember you know I was supposed to be a doctor like I was saying you're such a failure man yeah it's such a failure of being a lawyer in a real estate agent an investor imagine hearing that though When you don't have anything I know man it's scary and I before I got it so I in between

I also started the sock company the only way I Learned was by doing things and I was supposed to be a doctor and now people know me because I'm selling socks and you know people have these high expectations for you they're like oh that's pretty who's going to be a doctor oh he's a sock salesman and now imagine going to these parties right in in Indian Um aunties they have this like the gossip culture is the local judge and gossiping yeah and so you know fatigue and they'll say to your face oh so you're selling

socks now and then they don't just tell you to tell your parents everyone they tell your grandparents and you know it's uh and now you start hearing from every single person around you why are you throwing away the sacrifice that your parents made your parents gave up everything to come to This country so you could have a chance to be a doctor and you're throwing it away because you want to do this dumb thing called entrepreneurship oh man the shame around that it must be tough they put it all and now you have nothing to

show for it and you're failing at the thing you're failing that you're trying and you're screwing up and you have no idea like you just have this Vision that like you know when I'm 65 and I look back at my life 75 85 whatever year you want to put on let's just say 100 hopefully we can make it there we look back at life what are you like are you going to be upset that you tried and failed or are you going to be upset that you never give it a shot and I remember that

was like what I kept telling myself I was like look I'm going to be old one day hopefully and I'm going to look back at life and that's when I'm gonna say you know am I happy that I tried and screwed Up yeah or am I happy that I never tried and here's the thing pain is the price of admission for greatness yeah and we just have to ask ourselves what type of pain do I want to experience do I want to experience pain of not doing anything yeah and then feeling unhealthy and sick and

you know bankrupt because I didn't take action and I was afraid and the pain comes to me later or do I want to put myself through controlled Pain by facing the insecurity by facing the Fears by doing the the challenging things consistently with my health with my finances to set myself up for more peace in the future yeah either way we're going to experience pain 100 but the controlled conscious daily consistent pain is the price of admission for greatness and we've got to be willing to lean into that if we want to have something in

your life that feels like peace you know the biggest drug that holds us back from doing that Comfort I know make it comfortable and it becomes a drug and we get addicted to this idea of I need my health care I need my steady salary I need my 401k I need these things to feel safe I need my lattes every day you know and and those are the things that then hold us back from then following and doing something else because we can create a million excuses right it's easy to make excuses for why I

had the side hustle's idea I had this Business idea I want to go start investing I want to do something it's easy to make excuses oh I don't have a million dollars my parents didn't give me a million dollars so I don't have Rich parents so I look a certain way look man you know it's excuses are easy yeah and this is right now look sometimes we go through real problems like mental health is a real problem If you are struggling you can't get up because you're depressed you're anxious okay let's start with that right

you can't build a business when you can't even get out of bed so you break it down okay if I'm struggling mentally you got to get that taken care of first go spend whatever it costs do whatever it takes start working on that pain creates purpose right and now you you can then start to work towards something else and then you start work but you gotta get Away from that Comfort drug and understand you know what sometimes you got to be willing to be uncomfortable I had this talk with me so it's kind of this

is funny I don't think I've ever talked about this publicly but I I remember I used to go through like the worst case scenario I was like worst case worst worst case my parents kicked me out of the house uh I make no money I'm homeless yes what's the big deal okay I can make that work I'm like can I Make it work and and so a funny kind of segue from that is later on I went and started a uh a co-founded a community service organization and we did a lot of or do a

lot of help we call it Seva which is um a sick word but I'm from the sick Faith s-i-k-h that's the name of the religion uh and Seva is a fundamental tenant which means selfless service and so one of the things that we do was we would do a lot of things in the city of Detroit to help people there primarily homeless people and kind of as a joking idea kind of as like a serious thing I told a co-founders I was like hey you know we're doing a lot of things for homeless people healer

but we don't know what they're going through why don't we try being homeless and and I like doing kind of different things and putting myself through it and so a couple of guys were like yeah let's try it and so um you Know I know I could never experience real homelessness because I know I have a home I have a family I have I have that comfort that I knew I was going to go back to but for four days we slept on the streets of Detroit we had 15 a person um and wow we're

gonna figure it out and to kind of prepare myself I didn't shower for a week for a leading up to it and no we just tried it and this is right now you know you put yourself in Uncomfortable situations for me I kind of try to do that because it gives you New Perspectives yes new ways of thinking and people call me crazy and all this stuff all the time but I kind of it makes sense to me now because I want I don't do things the way everybody else does I don't see the world

everybody else does and I want to try things that way I can see the world from different places like we were talking about before People with different opinions I look for that yes most people like especially in this political climate if you disagree with me block turn you off talk to me I want to hear what you have to say we don't have to agree but I want to learn from you and that's where wisdom comes from is when you can listen to two different points of view and then come up with your own analysis

like when we talk about stock market investing I'm gonna tie this back to finances When people talk about how do you know if it's a good company to invest in like one of the things that we talk about is and I talk about on YouTube is listen to people's opinions about a company but don't just listen to One side's opinions listen to people that think that the stock is going to the Moon listen to people who think that the stock is going gosh yeah and now you have both perspectives because if you just listen to

people that say nothing is going to Go wrong you're going to be in this euphoric state of I'm gonna buy everything but you have to put things in perspective and understand there's two sides to everything to be willing to again it's uncomfortable right especially when you firmly believe something and then you hear somebody telling you that you're completely wrong that you're an idiot that you're a fool makes you a little uncomfortable yes but being willing to make yourself Uncomfortable can teach you a lot so that's we're talking about saving money but it also kind of

ties in together of knowing now being willing to handle that judgment because that is hard man huge man it is hard huge which then brings us to then protecting yourself which you know there's a few different things here and protecting yourself and protecting your money and what's the fourth one span gross save oh wait we've completely skipped earning earning oh my God we Can't skip that's the most fun one man wow I'm sorry for that so earning now is you built a system 75 1510 every time you make money some of your money is being

spent some of your money is being invested some of your money is being saved now it's I kind of like this financial education stuff how can I amplify the system you got to put more fuel on the fire how do you do that you need to earn more money now This is where unfortunately unfortunately a lot of people look for that quick and easy way I mean who doesn't want to get rich quick right that's it's it's very appealing right the problem is most people who try to get rich quick end up losing and you

end up paying somebody selling you will get rich quick service and unfortunately it's very unfortunate but that's I mean it's very easy to sell this idea of get rich Quick and this is where now understanding that you know we could go over systems of do these five things to build a million dollar business but everything everyone's going to be different and sometimes you just got to be willing to put in the work yeah and there's no bypassing that but now it's understanding how you can work hard and work smart because most of us are taught

that hard work is rewarded and it is But you have to complement this hard work with smart work like if the hardest people in America were compensated by their level of work construction workers would be the highest paid people in America yeah but they're not teachers would be making more money way more money they're not we're compensated completely differently and this makes a lot of people angry because you say man I put in 20 hours I put in 12 hours I've been Putting a break in my back and this is all I'm making and this

is where it's it's why this is why we need to be taught how our financial system works because we're all a piece of this puzzle but most of us are only consumers we're never taught how to benefit from the way the economic system works and so you have to be able to work smart instead of just working hard and now the question is now first you have to be willing to work hard like I I when People tell me hey man I want to start a business because I don't want to work that hard I

I can't even talk to you like like it's a completely different language you've got to obsess over something if you wanted to do well yes you have to be obsessive and a business owner doesn't get to turn it off you don't get to clock out at five and say well I'm done for the day like I don't have to worry about anything like time to go Home and chill and relax and just watch the money flow in you've got to it doesn't shut off you're thinking non-stop about your employees and making sure they're taken care

of about am I going to be able to generate enough money to take picture of them and the expenses and running new initiatives and launching your products and making those better and dealing with customer acquisition it never stops and if you think running starting a business is Just going to bring you a bunch of passive income and cash flow man Teach me the the system on how to do that because I don't know any entrepreneur that knows how to do that it's it's it doesn't work like that I know my dad used to joke around

we had to talk the other day my dad worked very hard and he joked around about me because he saw this article on the internet and he was like laughing I was like what's so funny he was like work life balance I was like What he's like look at this article you Young Generation dude people are asking for a work-life balance and I was like what are you talking about he's like there is no concept of a work-life balance when I came to this country it was work if I didn't work I don't have money

to feed you yeah right and it's like sometimes you got to be willing to put in that sacrifice and obviously look we live a life and you want to you know you got to balance this but sometimes You got to be imbalanced to have more balance it's a season of life that you've got to be imbalanced in order to get to balance right and you know when I like I work a lot but I don't work as much as I used to yes and I have been comfortable man you're getting soft a little bit man

I seriously gotta go back through something that's going to make me uncomfortable well the economy might put you through that so don't worry I know but if you're not disciplined with Your pain the world will bring pain to you yeah 100 you're 100 right on that but it's a matter of now understanding when is the sacrifice worthwhile and when are you going to be willing to do that so it's now okay I got to be willing to put in the work yes the second thing is now where am I putting that work now some people

are born with the entrepreneurial book entrepreneurial book some people are not some people can't handle the risk that's Okay not everybody should operate a business not everybody should be an entrepreneur I know the internet makes it seem like that's not the case look it's there's nothing wrong with working a job okay just understand now what are the different ways that you can earn more money can you work to get a raise can you work to maybe change careers if you don't have that much upside potential can you get new skills can you get new skills

a certificate can you can You do something to earn more money and it's much more accessible on online now there are so many skills you can learn online that can help you earn more money maybe get a second job right if that's not the case for you maybe now you can create your own side hustle if you have an idea maybe that can become its own business the one thing that I would say about side hustles is a lot of mistakes the mistake that a lot of people make is you Try to do too many

things and then you end up doing nothing right so it's it's focusing down on what is it that you want to do and working to scale that and really just being willing to learn and being willing to fail like if you have the discipline you have the work ethic you're willing to learn and you're willing to fail there's really not much that can stop you because now you have the recipe to Actually go out and make it happen but it's very difficult and you're going to go through a lot of tough times and most people

give up after the first or the second or the third and and that's where you know the people that keep standing are the ones that can then have the chance to succeed right man if you're not I forget who said it it might have been Kobe but you can't beat somebody who doesn't stop getting enough that's True right and it's it's one of those things where you just got to keep coming back and keep trying keep learning and keeping and goes back to the judgment which then brings us now to how do you protect you

protect that money baby because now as you build more wealth as you start to do more of these things now you start to achieve more success you don't want to lose it you don't want to lose it and now you know this is where the first thing I would say is taxes Because this is probably the most interesting thing about this let's talk man and as an attorney who spent a lot of time studying the tax code what I can tell you is not all income is treated the same uh in general the IRS has

three different categories of income you have earned income ordinary income does the money making your job your W-2 salary you have your portfolio income this is your investment income so if I sell a Stock for a profit that is my portfolio income and then you have passive income this is the money you make for something like a rental property uh something that you're not operating but it's generating you cash flow out of these three different types of income the income that comes with the highest tax rates and the lowest tax write-offs the lowest deductions is

your earned income your ordinary income the money you make from your job now again This makes a lot of people upset and angry because they're like wait what I'm working so hard to make my money you're telling me that if I made this money for my investments which doesn't require as much physical labor where I can make even more money I pay less in taxes yes and again we're never taught this and that's the first frustrating part is the reason why people are upset is because they don't know how to take advantage of it and

you can't take advantage of Something you don't understand so the first step is now understanding look this is the rules you can hate me for telling you but I'm telling you what the rule book says the IRS rulebook census it's over 2 000 pages long and all that really says is here are the different categories of income here are the write-offs do you know what these write-offs apply they don't apply for your W-2 income because most people are just taking the standard deduction they Have applied for your investment income your portfolio income or your passive

income so now the question is how do you optimize that how do you take advantage of that because the IRS rulebook is a rule book it's a guideline like it tells you what you can do and what you can't do so now your goal is to understand this and say based off of this rulebook I should be doing this or I should have been doing This and this is where tax planning comes into play if your accountant your CPA if you have one if you have a business or invest in real estate I 100 recommend

you have one always have a good accountant on your side when you have tax when you need tax advice but if all they're doing is filing your taxes you are leaving a lot of money on the table and that's where it becomes so important to understand that you know for many Americans your taxes are your Biggest expense because it's money that's taken out of your paycheck before you even get to see it and now if you can understand how you can utilize certain things and you talked about the real estate professional exemption if you're investing

in real estate for Real Estate has some of the biggest and best tax write-offs that are taxed what has to offer people like investing in real estate for three reasons one you get cash flow second you own a hard asset Because now you're taking your paper cash to a physical piece of bricks and windows and real estate land yeah and third you get tax breaks real estate is one of the best tools out there to use a tax code because with real estate you get paper write-offs which means I can show the IRS yeah I

made ten thousand dollars worth of profit but my taxable income is maybe zero because I can show them a property is one year older it's called depreciation So I get to show the IRS hey my property is one year older so I'm not gonna I don't have any real taxable income even though you have some money in the bank right and that's going to depend on how valuable the property is but now you can make money and pay zero dollars in taxes in addition to that you could potentially there are some there's a lot of

restrictions on this but if you lose money or lose money on paper meaning you make a profit you tell the IRS you lost Money depending on how much money you make and how much money you lose you could take some of this money offset some of your job income there's a lot of rules against this but that you can do that then if you sell your real estate property for a profit small or big you can use all that money go buy another property and pay zero dollars in tax today it's called the 1031 exchange

so all these things are available but You have to Now understand that you have to want to understand it then how do you do it now the first issue that people have is how am I supposed to invest in real estate I can barely buy a home for myself right well you have to plan for it yeah right it's not something that happens overnight you're gonna have to work towards it and if you can't find any property in your area maybe you look in a different area second is if real estate is completely Out of

the picture either you tell yourself you can't do it or you don't want to do it you don't have to you can also invest in stocks and still get some of the tax advantages because now your portfolio income has lower tax rates and so now you can invest in stocks you can generate cash flow from stocks you can pay less taxes you might not have the same tax benefits as real estate but you still get a lot of tax benefits and you can start with I mean I like to say as Little as a hundred

dollars but literally you can start with as little as one dollar there are platforms out there that will let you start with one dollar but again it starts with that education the second thing when it comes to protecting so the person you've got to understand the taxes I would 100 recommend getting a good accountant second is protect yourself if you have a business idea protect yourself Um because the reality is there's people that want to come after you people in America you can sue anybody for anything and we are the most litigious country in the

world I've seen this far understand yes and this is where now you want to protect yourself protect your idea so I'll give you a quick story because when I started the minority mindset um I know the value of trademarks so I trademarked the name it cost a little bit of money but I trademarked the name Minority mindset a little bit after I I was a nobody like minority mindset was still a nobody at this time but then I got these messages and then I got a potential lawsuit against me because somebody claimed that they owned

the rights to the word minority mindset and I looked at why it's because like 10 years prior to me starting the minority mindset this guy wrote One blog post with the words minority mindset in it so he's like I Own the rights of this name and me and my attorneys looked at this and were like well we have a federally registered trademark on the name minority mindset so no you there was nothing that they could do so you want to protect yourself right and so now it's whatever types of legal protections you can have one

if it's a business ID you can have legal protection right so a little story I don't work as an attorney but I started a little Law Firm referral service to Help people if you have a business idea to protect it it's called Buzz legal the referral service is free you would just pay the attorney if we do get compensated as from the attorney so if that's something that you're interested in you need a patent a trademark a copyrightbuzzlegal.com we can help refer you to somebody with that but then it's now having the right Protections in

place the first thing would be Insurance uh When especially if you're investing if you're starting a business if you are investing in real estate you have to have insurance uh property insurance so for Real Estate you want lenders insurance or your landlord's insurance even if your homeowner needs property insurance even if you're a renter you need some sort of property insurance but as a landlord it becomes infinitely more important because now Again you can be sued for anything um I was sued or my real estate company was sued because well a tenant claimed that when

you turn the water on in the bathtub that it got too slippery and so that made them fall but we also had documentation thankfully because I had a good manager at the time showing that they slipped and fell at a friend's barbecue so I slipped and fell at a friend's barbecue they claimed that they fell in the bathtub because it was Slippery when the water was on trying to go after some money this is where you want Insurance because you can say hey look this is a silly lawsuit but you just have to pay an

attorney 350 an hour still have to manage it except to manage it so that's where you know insurance comes in and when you have the documentation it goes away with the least pain possible yes but the insurance is the one that's going to be the first line of defense when you buy a Home whether you're living in it or it's an investment property someone else is living in it should you put it in an LLC or a trust protect you personally from anything or how does that work uh the general answer is yes I I

just please sing Oh no real estate my companies on real estate so do you live in your home or no you rent I rent but what I'm Talking about the rental properties these are all llc's so one per property so I started off with one per property then so let's start with what is an LLC so we're just kind of establish that when you create an entity you are essentially building a new person a new uh company so LLC is one example another example is potentially an S corporation those are the two main most common

ones for Real Estate You're essentially creating a new holding uh person or entity that owns this property so you don't own it under your own name you own it under this LLC name so a set of dustblade sync buying it it might be just please sing LLC and now when I buy this property under adjust breathing LLC just pressing LLC owns the property so when I started off I had one LLC per property and the reason why now is because when the property is owned by this LLC If a tenant sues they sue the LLC

they don't sell me personally assuming you separate all of your finances and you treat the LLC like a business meaning you're not going into the business bank account to buy your groceries and stuff so you have your separate set of books and everything with the LLC well what happens then is when you have well let's explain why this matters first because now if a tenant sues an insurance company your insurance company Doesn't cover it then they might uh the max that they can take the max they can go after is whatever the LLC owns in

this case the LLC owns that property that's all of your assets not all your assets just their property so they can't go after your personal assets just whatever the property owns so that's why a lot of attorneys who want to be very legally cautious will tell you to have one LLC per property which is how I started Um that way then you're protected legally but then you run into the second issue which is a financial headache because now for each LLC you got to have your own bank account you gotta have taxes and tax filing

you've got to have its own checkbook maybe a separate credit card a debit card a lot it's a lot and so yeah when you have five no big deal when you start getting into bigger numbers that can be extremely painful so then I started bundling Especially single family homes multiple into one LLC if it's a bigger apartment complex I might have that as its own LLC but um I don't do one LLC per property anymore but then the next level of protection we're going to go even deeper into real estate now is now how do

you protect your equity in a property let's say you buy a property cash for a hundred thousand dollars hypothetical if let's talk about worst case scenario A tenant sues you you buy this property cash insurance doesn't cover it and the judge says well you're entitled to five hundred thousand dollars you say well the LLC only has this property it's worth 100 Grand that's the max you can have fine they take the hundred thousand dollars now you're out to that property because you bought it with cash so your Equity is gone Scenario two now is I

buy this property with just placing LLC but instead of me giving it a hundred thousand dollars I loan just releasing LLC hundred thousand dollars it's the same thing it's going from my personal bank account to that bank account I just got to do some different paperwork uh your attorney should be able to do this loan it I loan it so now just placing LLC buys the property with a hundred thousand dollar loan The home is there subject to a hundred thousand dollar loan tenant slips and falls they sue insurance doesn't cover for whatever reason judge

says they're entitled to five hundred thousand dollars all all you have in this property in this LLC is this property worth 100 Grand you take it so they take your property subject tier 100 000 loan so now they have your property but they got To make your mortgage payments so they gotta pay the payments no they're going to make the more because they got the property but there's a loan on the property so they may not want to take it then well that they might still take it but then they're still paying you back your

loan so you have that 100 Grand so this is right strategic protection is very important I like that having a good accountant and a good attorney is is Very important uh on your side so then you know we talked about insurance we talked about protecting your business idea estate planning this is one of those things that nobody wants to do we never want to think about dying um but as an attorney I should always say that you want to protect yourself financially by getting some sort of State planning yeah and just go I mean there's

a little bit of a Cost to this but get a will get a trust what you need is going to depend on you know what your personal financial situation is but get some sort of planning in place that way you can protect your family in case worst case scenario have I mean we're all going to die eventually but you want to have a plan because the last person you want to decide where your money and assets go is the government and finally then is Part of this protecting is knowing how do you want to give

back as well the more you have the more you can do the more you can give and this is where now remembering it costs money to eat it costs money to feed other people when you have more you can give more and now how do you give you can give with money you can get with time you can get with education and how do you give and this is where you can do What's and this is what I love about this particular part is everybody has a different passion some people are passionate about mental health

some people are passionate about world hunger some people are passionate about whatever disease and when you have money now you can do something to fuel your passion and you're going to be criticized no matter what when we feed people in Detroit people will say why are you feeding them Why aren't you fighting the drug problem look here's the thing right when you when you're doing more of this or that or how about this it's usually somebody sitting on their sofa who's just complaining off their phone right but the thing is when you have that money

you get to decide yeah and what's important to you and you get to help however you want like when we uh the minority mindset YouTube channel hit a million subscribers I wanted to do Something fun to kind of uh big time give back with the team so we did this like fun giveaway where well and this was like in the pandemic time so people weren't going to school and so you had a lot of businesses getting hurt especially like teacher businesses people that were supplying supplies to teachers because people are going to school so we

did this thing kind of like Mr B style where me and my team we went to a teacher store and we said hey can We buy some stuff here she said sir I said well let's have some fun with it so we put on the cameras and we had like my team get shopping cart somebody that just bought a huge chunk of the store and it was like they're huge just a lot of fun uh we bought thousands of thousand dollars worth I don't remember how much but thousands of dollars worth of stuff which then

we went to a school in Detroit that I was working with Um and we gave it to them for free and now they have a whole bunch of school supplies and they asked the principal I said hey how many teachers do you have um here in the school he told me and so I gave a check for 500 for each teacher in the school uh just as a way to now the more you have the more you can do and this is where just remembering that you have the ability to give back like it doesn't

have to be necessarily Religious like I talked about Seva and the Sikh religion Seva is a fundamental tenant in the religion it doesn't have to be something religious it's just now you have the you have the freedom and the choice now how you can help and who you want to help and being willing to give back because it can be time money education how would we help to help somebody else see that success as well jaspreet Singh man this is powerful stuff man we've Covered five key things that you can do to start in your

30s to be able to set yourself up to retire in your 50s and potentially even sooner if you learn their earning and investing part and saving part better um this is powerful stuff man I've got about 20 other questions about earning making money investing what to do with the economy and all the different things That are happening right now in the world and if people want more leave a yes below if you want to see another episode on all these different topics about managing and mastering your money for this year and Beyond with my man

just buddy Singh I had to leave a comment below yes if you like this if you want more share it out make sure to follow jasperite uh on the minoritymindset.com YouTube slash minority mindset Market briefs.co is That correct it's a brief.com briefs dot Co which is an amazing newsletter hundreds of thousands of people that read weekly um again you've got lots of great stuff buzzlegal.com if you guys are looking for trademarks and different things with LLCs and protecting yourself in that space follow you over on Instagram all these different places minority mindset briefs dot Co

and uh how else can we be of Service to you today my man oh man well last one is uh marketinsiders.com if you want more of the education side we even have a free ebook about how to get started with investing you can read marketinsiders.com marketinsiders.com make sure to check it out we'll have it linked up Below in the description on YouTube on audio as well if you enjoyed this subscribe like comment just please appreciate you my man thanks so much for coming on as Always when I get something I don't want to lose it

but I've also been very conservative in terms of like uh Building Wealth saving money uh in terms of like investment returns like everything I'm like well if I just can average four percent like I'm fine or even three these are three percent but um no for me I just think like I've always